Double Dip fears grow as Businesses Rush for Redundancy Advice

Small businesses across Britain could be heading for a double dip recession as a result of the emergency budget after it emerged the numbers seeking to make staff redundant has soared in recent weeks.

Despite today’s figures showing growth in GDP over the second quarter of 2010, employment law experts say they have been receiving more requests for advice on redundancies since the emergency budget a month ago than at any other point since early 2009.

Peter Mooney of Employment Law Advisory Services (ELAS), said:

“We have not seen an explosion in calls for advice on any one issue like this since the peak of the recession 18 months ago.”

“We were already becoming quite concerned by the rising number of enquiries we were receiving before the budget, but there has been a significant rise since then.”

“At the moment, we can’t be sure how many companies were hoping not to have to make redundancies until they’d heard the detail of the budget, or indeed how many jobs have since been lost, but it is a clearly a concern.”

And despite figures pointing to a recovery in the construction sector, one of the industries worst affected by the recent fall in business confidence is construction, followed closely by the independent education sector.

The news comes just days after the Bank of England published data showing that lending to British SMEs had all but dried up, leading to fears for the fragile recovery.

Enquiries about redundancies made to ELAS’ 24-hour helpline began rising in April after several successive monthly falls. The volume of related enquiries peaked during the week commencing June 28 – immediately following the emergency budget – but monthly figures remain higher now than at any point since August 2009.

For further information see our Business Advice section on Employment Regulations and the article on Redundancy.

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